The monetary policy destinations in lraq after 2003 and its role in the tune of the currency and international reserves

Thesis submitted to the Councils of College of Administration & Economics , Karbala University
Which is part of the requirements of the master’s degree in Economics Sciences

By
Amjed fahkre Almamory
Supervision
Assistant Professor Dr. Kadhim Saad Abdul Redha Al-Araji

Abstract

That the transition situation experienced by the economy lraq  after 2003, and shift in trends monetary policy newly effect that the central bank on independence based on the law 56 year 2004,lat to the use of modern cash tools and commensueate with the requirements  of the market oriented system of the hand and the speciflcity that characterizes the lirq economy in light of the structural imbalance suffered by it as well as the failure of the financial system and banking on the other hand ,monetary authority has adopted a policy of targeting inflation in order to maintain monetary stability in the country were used in order to achieve nominally ,due to the economy and financil fragility and the separation of the real sector from the cash which makes the traditional channels do not meet the impact of monetary policy interest rate is largely ineffective  monetary authority used the window to sell the currency to him to control and control the exchange real  as well as the provision of foreign currencies sector your of import bridge the lack of GDP (under the system of exchange declared floating system of real exchange is divided into two phases first 2003-2009 the two and second floating system 2009-2016 fixed exchange rate system) the monetary authority  succeeded in using the currency sale window to control the exchange rate and to reduce the exchange gap between the offlcial price end the parallel price and then keep the exchange rate relatively stable for the duration 2003-2016 thus stabilizing prices and purchasing power in the economy ,but the success of this tool was at the expense pressing the international reserves the central bank in light of consumer spending the great by the government  compared to decrease the revenue oil representing the only source to view the currency foreign which makes the  exchange rate in the future is also unable to maintain the stability of prices and reduce inflation ,thus the lraq currency is threatened with collapse but it remains the only effective tool of the monetary authority under the special circumstances experienced by the lraq economy.